Japan's two biggest brokerages said the dollar will rebound against the yen and euro by year's end as economic conditions in Japan and Europe deteriorate and U.S. interest-rate cuts near an end.
The European Central Bank will be forced to lower borrowing costs in the second half as growth in the region slows, according to Daiwa Securities SMBC Co. Yen-buying isn't "sustainable" because the Japanese economy will cool and interest rates abroad are more attractive, Nomura Securities Co. said.
"U.S. rates and yields will cease to fall and then the dollar weakness will bottom out," Takahide Nagasaki, senior currency strategist at the unit of Daiwa Securities Group Inc., Japan's second-largest securities firm, said at a Tuesday financial seminar in Tokyo.